IA Makes Gains in HBO Contract

The IATSE negotiated a new three-year contract with HBO covering its original programming, effective Jan. 1, 2005. Negotiating on behalf of the IA were International President Tom Short, IA reps Matt Loeb, Joe Aredas, Mike Miller, Lyle Trachtenberg, Leo Geffner, Dale Short, Thom Davis and local reps John Ford, George Palazzo and Rosemarie Levy.

IATSE made several gains at the bargaining table. Among the many key points written into the new HBO contract:

  • Mileage rate increased to mirror current IRS rate (an increase from $.30 to $.37 per mile.), a first for any studio. Rate is applicable in both directions for all "outside the zone" transport, including distant locations.

  • Maximum travel deduction timeplaced on rest period, resulting in a guaranteed eight-hour rest period between calls on distant location.

  • Wage increase percentages based on scale rates: 3 percent in year one plus 3 percent in year two plus 3 percent in year three compounded.

  • Rest period increased to 10 hours.

  • Improved contract language regarding "walking meals" to ensure producers provide a reasonable opportunity for IATSE crew to sit and eat.

  • Benefits to track the Hollywood Basic Agreement, including IAP increase from current level of 4 percent to 4.5 percent, August 1, 2004, and 5 percent July 31, 2005.

  • Agreement confirmed to cover multi-camera half-hour sitcoms, which HBO has expressed interest in producing.

  • Beginning Jan. 1, 2005, IATSE Pension and Health Plan will receive an increase in the formula for payments for Pay TV products going into supplementals markets equal to SAG: 6 percent after the first 100,000 units sold.

  • A $75,000 one-time settlement payment into the actives portion of the Motion Picture Health and Welfare Fund for past supplemental markets from Pay TV.

The issue of supplemental and new residual-bearing markets has been a contentious one with both HBO and the industry as a whole. Getting Hollywood's largest pay cable producer to agree to allow IATSE to participate in negotiations around not only existing supplemental markets, but those which will develop in the future through new technologies, was an industry precedent. IATSE negotiators also insured that all supplemental market modifications would also apply to HBO Films, even though that contract does not expire until Aug. 31, 2005.

"The improvements we were able to get in the contract will most certainly lay out a pattern for future discussions on the HBO Films contract, as well as for contracts with other Pay Cable producers looking to do original programming," noted President Short.

"The gains we made in the supplemental markets issue is one of the big stories of this HBO contract. The future of television programming will almost certainly include new technologies like On-Demand and multiple producers looking to replicate HBO's success."

In 1995 Short spearheaded an organizing drive that resulted in a first-ever cycle of contracts with HBO in the area of long-form programming.

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